Can Aunt Millies Bakeries freely assign its distribution agreement?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Distribution Agreement | Summary | |
|---|---|---|---|
| j. | Assignment of contract by Franchisor | Not Applicable | Freely assignable by us |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–36)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, Aunt Millie's Bakeries has the right to freely assign its distribution agreement. The agreement is binding on the heirs, personal representatives, successors, or assigns of both parties.
This means that Aunt Millie's Bakeries can transfer its rights and obligations under the Distribution Agreement to another party without needing the distributor's consent. This is a standard clause in many franchise agreements, giving the franchisor flexibility in managing its business.
For a prospective Aunt Millies Bakeries distributor, this clause implies that the relationship could be with a different entity at some point during the term of the agreement if Aunt Millie's Bakeries chooses to assign it. While Aunt Millie's Bakeries remains responsible even if an affiliate undertakes obligations, the distributor should be aware of this possibility.